Natural Grocers shares strong Q1 2022 results

Colorado-based Natural Grocers has shared its Q1 2022 financial results, showing increased sales and income. The retailer, specializing in natural and organic products, carries an array of private label items, and operates 162 stores in 20 states.

To end fiscal 2021, Natural Grocers set a record increase in net sales and income partially due to private label sales, which made up 7.1% of Q4 2021 sales.

"We delivered a strong performance in the first quarter as the momentum we experienced in the fourth quarter continued into fiscal 2022,” said Kemper Isley, Natural Grocers co-president. "Our differentiated offering of the highest quality natural and organic products at ‘Always Affordable’ prices continues to drive robust demand from consumers. Furthermore, we appreciate the ongoing dedication and commitment of our crew in executing our operating strategies, including exceptional customer service."

For the first quarter of fiscal 2022 ended Dec. 31, 2021 compared to the first quarter of 2021, Natural Grocers reported a net sales increase of 4.6% to $277.3 million, with daily average comparable store sales increasing 3.8%, and 16.5% on a two-year stacked basis. 

Between the two quarters, net income increased 145.5% to $8.9 million, diluted earnings per share was $0.39, up from $0.16, and Adjusted EBITDA increased 44.7% to $19.5 million.

Gross profit during the first quarter of fiscal 2022 increased 7.8% to $78.7 million, largely driven by the increased sales volume. Gross margin increased to 28.4% during the first quarter of fiscal 2022, compared to 27.6% in the first quarter of fiscal 2021 due to improved product margin and store occupancy levels.

 Store expenses during the first quarter of fiscal 2022 decreased 1.6%, to $59.3 million. Store expenses as a percentage of net sales was 21.4% during the first quarter of fiscal 2022, down from 22.8% in the first quarter of fiscal 2021. 

"Like many companies, we face risks and uncertainties related to the COVID-19 pandemic, labor availability and the supply chain,” said Isley. “Our response to these challenges and the strong start to fiscal 2022 give us confidence in our outlook, and we expect they will position us to deliver enhanced value for all stakeholders."